Leading Mortgage Lender Movement Mortgage Becomes Early Adopter of FICO’s Most Predictive Credit Scoring Model
Using FICO Score 10 T Can Expand Mortgage Approval Rates by up to 5% When Compared to Versions Used Today
In 2020, FICO released FICO® Score 10 T, giving lenders unparalleled flexibility and predictive power to make more precise lending decisions by incorporating trended credit bureau data. As the first mover in the space, Movement Mortgage will be able to qualify more consumers for mortgages in the future, while offering investors better insights on portfolio performance. Based on FICO analysis:
- FICO® Score 10 T can expand mortgage approval rates by up to 5% relative to versions most commonly in use today, without adding incremental risk.
- FICO estimates delinquency rates could be reduced for mortgage originations by up to 17% at a cutoff of 680 as compared to prior FICO® Scores.
“Movement Mortgage is proud to be one of the first mortgage lenders to adopt the newest credit model, as part of our mission to empower more future customers,” said
The improvements in the predictive power of FICO® Score 10 T can help lenders safely avoid unexpected credit risk and better control default rates, while making more competitive credit offers to more consumers. And this all occurs without sacrificing the trusted FICO® Score minimum scoring criteria and user experience. A more predictive score will help more accurately project cash flows, potentially increasing the value of securitized assets on the secondary market. Movement Mortgage is excited to partner with FICO to work with the investor community on adopting this new standard.
“Movement Mortgage’s adoption of our new credit score model is an industry leading first step to showcasing the comparisons between classic FICO Scores and FICO Score 10 T for optimizing mortgage originations,” said
FICO is committed to assisting mortgage industry participants looking to transition to our most current model, FICO® Score 10 T, with their migration strategy and planning. FICO has launched a resource center to assist national lenders, mortgage servicers, community banks and credit unions, available at the following link: FICO®
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 215 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 countries, improving risk management, credit access and transparency. Learn more at www.fico.com.
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